Greece continues to tempt Romanian tourists despite drama

Greece is pinning its hopes on tourism for its economic revival, but as the recession continues to linger in Europe, 2010 isn’t bringing a sunny outlook so far. But back in Romania, where the Balkan country is already a popular destination, local operators say that price decreases and special offers will boost Romanians’ appetite for a Greek vacation this summer.

Simona Bazavan

It is hard to think of Greece without picturing sun-bleached beaches, paradise islands, ancient monuments, friendly locals, and the list can surely go on. To put it in fewer words, Greece and its economy seem indelibly bound up with the local tourism industry.

The country relies on tourism for about one out of five jobs and more than 25 percent of its GDP. Greece, which has a population of more than 11 million, was visited by about 16 million tourists annually before the economic crisis. Last year, however, the situation took a turn for the worse as recession-hit Europeans trimmed their vacation plans.

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Headlines around the world about the country’s debt problems and strikes and protests against austerity measures didn’t help. The timing couldn’t have been worse as tourism-generated incomes are now vital for a country that is trying to recover from its first recession in 16 years.

“Greece went through a very tough and unfair media attack as the current financial crisis is a global phenomenon and not uniquely a Greek problem,” Nikos Diakolios, director of the Bucharest Office of the Greek National Tourism Organization (GNTO), told Business Review in an interview last week. Greek authorities have taken measures to assure tourists that the demonstrations are strictly local and limited events taking place in controlled areas, while the mainland regions and Greek islands, where the vast majority of tourists go, are not affected at all. Nevertheless, the number of tourists to some locations has fallen as a consequence of the social unrest – but this has had only a local impact on the tourism industry, according to Diakolios. Here too, the National Association of Travel Agencies in Romania (ANAT) has assured would-be travelers that Greece is a safe destination.

“The problems in Greece will not affect Romanian tourists as long as they avoid conflict areas in large cities like Athens or Thessaloniki. The protests are targeting the central and local authorities, and as such, other areas in Greece are safe,” said ANAT representatives.

In spite of the economic recession and the media turmoil, Greece managed to attract about 15 million tourists last year. “In 2009 14,914,534 tourists visited Greece, a fall of 6.4 and 6 percent respectively on 2008 and 2007. The estimations for the current year are that we will hopefully keep the same levels as this and if there is a fall it will not exceed 10 percent. And this is because of the global financial crisis,” said Diakolios. Approximately 13.6 million tourists were European, mainly from countries such as Great Britain, Germany and Scandinavia. Early bookings were down and most Greek tour operators had to rely on last-minute deals, a trend that is likely to continue this year also, he added.

The approach for 2010 is to continue to reduce prices and at the same time increase the quality of the services. “The Greek authorities have taken measures to cut prices and improve infrastructure and services at the same time. We keep on becoming better and better, we have the experience, we have the ‘know how’ and we behave as a top destination. That means responsibility, respect to our guests and above all traditional Greek hospitality, philoxenia. Also we have launched a new campaign based on a completely new strategy and concept. ‘You in Greece’ is the new logo and motto for the promotion of the Greek touristic product,” said Diakolios.

In Romania, Greece has been one of the top three destinations for people travelling abroad for a few years now, and local travel agencies are optimistic in their predictions for this summer.

“The most popular destinations for the summer of 2010 are Bulgaria, Greece and Turkey. The trend has changed as Romanians now prefer cheaper and closer to home tourist destinations,” Traian Badulescu, spokesperson for ANAT, told Business Review.

“Greece currently holds second position among the top foreign destination for Romanians. While in previous years Greece was first, things have changed due to the street protests in the country’s main cities. On the other hand local hotels and tour operators are cutting prices and making special offers in order to bring back tourists,” Badulescu added.

The number of Romanian visitors to Greece has been increasing on a yearly basis. “More than 450,000 Romanian tourists visit our country every year and this figure refers to both organized and independent travelers. This number is for 2008 and 2009 which were the best years for outgoing Romanians to Greece. Our country has been the top destination for outgoing Romanians for three consecutive years, 2007, 2008 and 2009,” said Diakolios. He added that Romanians who go to Greece are generally people with a medium to high income. “Generally speaking, Romanian tourists spend a lot,” Diakolios added.

According to Badulescu, in the first half of the year there has been a decrease of about 20 to 30 percent in the number of local tourists to Greece. This trend, however, is expected to change in the second half of the year as a consequence of prices falling by up to 40 percent and the improvement of the social situation in Greece, Badulescu predicted.

When it comes to reducing holiday budgets Romanians are no exception, complain local travel agencies. The average price for a holiday package has fallen by 10-15 percent in 2010 compared to the previous year, reaching about EUR 300-400, according to Teodor Calimanescu of Europa Travel. Consumer patterns have also changed as Romanian tourists have become more experienced and selective when deciding on a certain location or even a certain hotel, added Calimanescu.

So far, prices for the 2010 season in Greece have fallen on average by 10 percent, according to Alexandru Negrila of Jeka-Turism. He added that the number of Romanians who cancelled their holiday to Greece during the demonstrations in Athens was very small compared to those who chose the country as a travel destination in the same period. “The most popular Greek destinations for Romanians are Rhodes, Crete, Santorini, Corfu, Halkidiki and the northern continental region and more recently Skiathos and Thassos,” said Ana Maria Moanta, marketing director of Marshal Turism.

In the light of the recent VAT hike, local travel agencies affiliated to the National Association of Travel Agencies in Romania (ANAT) have decided not to increase vacation prices for the 2010 season. “This decision comes naturally considering the fact that we are facing a significant drop in sales, about 20 to 40 percent in May and June for some destinations compared to the same period last year, a drop which is generated by the government’s austerity measures,” said Corina Martin, ANAT president.